Hi All
Took some time to review MAD's chart today. Much has been said/discussed about its fundamentals, but not a lot about its chart, so I thought I would post my chart of it below.
I have to say, its not a very good looking chart atm. The main features that are relevant atm are:
1. The fact that the support for that consolidating ascending triangle broke down, and the backtest of that triangle's baseline failed.
2. Since then, the SP has dropped (as you would expect after such a consolidation feature breakdown) and is now either testing or breaking a 15 month old support level.
Imo the only thing suggesting (technically) that this current support level hasnt broken is that green candle from Wednesday which indicates buying support and was based on the high impact announcement. If that fails in the short term then unfortunately the bears' view will be supported at least in the short term. If it holds, then the probability is in favour of a recovery supported by short term news (high impact updates, production performance, etc).
As for which is more important - fundamentals vs technicals? Well thats a much debated topic and I dont want to start it here, but I have learned to respect my technicals even if I strongly believe in the fundamentals.
Cheers, Sharks.
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